- afraid of risk
- afraid of maintenance and repairs
- afraid of vacancies
Let dissect these fears:
Afraid of Risk
"YOU WILL NEVER EVER FIND A RISK-FREE INVESTMENT!" Some of you want no risk. If this is what you want, you don't want to make any money anywhere. Just put your money in your ceramic pink piggy bank but watch out for Mr. Inflation because he'll eat away at that with out a sound. If you follow the advice that I gave you before about investing in Metropolitan areas, good rental market areas, stable market areas and low median areas, you are already reducing your investment risk. You also want to invest in fairly good neighborhoods. Pay attention to safety, schools, shopping etc. In decent neighborhoods, your tenants tend to stay longer, pay on time and take better care of the property.
Afraid of Maintenance and Repairs
Just because you own the property doesn't make you and automatic handy man. Hire a property management company. Your time is more valuable than touch up paint, plumbing and carpeting. We hire professionals for everything else. It's worth it!
Afraid of Vacancies
If you take my advice and invest in a good neighborhood in a good market, vacancies are very unlikely. Normally, if your house is not renting the problem is the owner. It's not that there isn't anyone to rent to...you are asking to much. Think long term. It better to occupy your property for a little less than to pay a mortgage on a vacant property. You can always gradually raise the price of your rent and end up getting what you want. Even if you have a negative cash flow at first, the tax benefits will offset this.
Hopefully, this has helped ease some of your fears regarding investing. It's time to start securing your financial future with real estate investing.
Blessings to your real estate investing,
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